1. Helping young people learn to think, choose, and make better economic and financial choices in a global economy Cindy Manzano Director of Smarter Texas 1801 Allen Parkway Houston, TX 77019 C: 713.503.5338 F: 713.655.1655 cindy@economicstexas.org www.economicstexas.org www.smartertexas.org 1

2. The TCEE programs are made possible by the following TCEE partners. copyDR. EnviroChem Services, Inc. Trout Foundation John Anderson Less B. Fox RBC Wealth Management

3. Credit Report Grade 6 3

4. Standards 0 PFL Math 6.14D: explain why it is important to establish a positive credit history 0 PFL Math 6.14E: describe the information in a credit report and how long it is retained 0 PFL Math 6.14F: describe the value of credit reports to borrowers and to lenders 4

5. What is Credit? 0 Handsonbanking.org 5

6. Decide if the given information is a negative (pink card) or positive (yellow card)action. 0 In the past 6 months, Mia made 2 late payments on her credit card. 0 Joaquin maintains a low balance on his credit cards. 0 Joaquin has 4 credit cards owes money to each credit card company. 0 Mia has only 1 credit card. 6

7. Decide if the given information is a negative (pink card) or positive (yellow card)action. 0 Mia owes money on 5 loans. 0 Joaquin is shopping for a new car and has recently had three inquires on his credit report. 0 Joaquin has one outstanding loan that is almost paid off. 0 Joaquin pays all his bills on time. 7

8. Decide if the given information is a negative (pink card) or positive (yellow card)action. 0 The oldest credit card Mia has is 5 months old. 0 Joaquin has had the same credit card for 10 years. 0 Mia has a civil judgment against her for $800. This means that she owed $800 for a service or good and did not pay this bill. Someone then took her to court to settle the issue. 8

9. Who would you lend money to: Mia or Joaquin? 9

10. Why is a credit report important? 10

11. What is included on a credit report? 0 http://www.federalreserve.gov/creditreports/ http://www.federalreserve.gov/creditreports/ 11

12. Why is it important to maintain a positive credit history? 12 Telephone companies and utility companies will decide if they will give your service. Prospective employers may use it to determine if you will be hired. Landlords will use it to determine whether to rent an apartment to you. Borrower can show lenders that he or she can be trusted to meet his or her financial obligations. Borrower with good credit can get better interest rates when applying for a loan. Insurance companies decide if they will provide insurance and determine the rate.

13. https://www.bettermoneyhabits.com/i ndex.html 13

14. 14 Factors Affecting Credit

15. http://www.equifax.com/credit- education/credit-score/ 15

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